Regulation of the Minister of Environment and Forestry of the Republic of Indonesia no. 21 of 2022 concerning procedure for implementation of carbon pricing.

This Regulation, consisting of 85 articles and divided into twelve chapters, and implementing provisions of the Presidential Regulation Number 98 of 2021, provides for the implementation of carbon pricing, defined as NEK and meaning the value of each unit of greenhouse gas emissions generated from human or economic activities in the following sectors: energy, waste, industrial processes, agriculture and livestock, forestry. The Regulation defines the following relevant terms: greenhouse gas emissions level; result-based payment; climate change mitigation and adaptation actions; Nationally Determined Contribution; certification of greenhouse gas emissions reduction; carbon levy; emissions trading; emissions cap allowance; clean development mechanism; Indonesian environment fund.
Chapter II concerns Ministerial powers and procedures for the implementation of carbon trading, including: environmental standards and targets; preparation of environmental plans and roadmaps; measurement of emissions and calculation of emissions reduction performance; international carbon trading through international cooperation. Chapter III concerns result-based payments and other incentives; monitoring, evaluation and capacity building. Further Chapters include: carbon levy and Ministerial decisions on other mechanisms for the NEK implementation in accordance with the development of science and technology; measurement, reporting and verification of NEK implementation; obligation for business actors to register and report their operations and activities; requirements and procedures for issuance a certification of emissions reduction; funding management for carbon trading.